Rep. Alexandria Ocasio-Cortez (D-N.Y.) raised alarms on Capitol Hill Tuesday about what she described as an emerging economic bubble driven by the rapid growth of artificial intelligence companies. Speaking during a House hearing on AI chatbots, the congresswoman waded directly into a debate that has been simmering across the tech sector and financial markets for months.
Ocasio-Cortez highlighted the outsized role AI giants like Microsoft, Google, Amazon, and Meta now play in fueling stock market gains and broader economic momentum. That level of concentration, she warned, leaves the U.S. economy vulnerable should the industry falter. “The exposure of this industry and this investment, I fear, has reached broad levels, potentially, of the American economy,” she said. “We’re talking about a massive economic bubble… Depending on the exposure of that bubble, we could see 2008-style threats to economic stability.”
She emphasized that if such a bubble bursts, the federal government should not step in to rescue AI corporations. Pointing to ongoing struggles among working families, Ocasio-Cortez argued that essential social programs remain underfunded while the tech sector seeks unprecedented government support. “We should not entertain a bailout of these corporations, as healthcare is being denied to everyday Americans, as SNAP and food assistance is being denied to everyday Americans,” she said, adding that the pressure driving people toward AI-based coping tools is rooted in unmet social needs.
Her comments followed recent controversy over remarks by OpenAI Chief Financial Officer Sarah Friar, who suggested the company may eventually require a federal “backstop” as it scales costly AI infrastructure. Friar later walked back the statement, and CEO Sam Altman insisted the company is not seeking government guarantees.
Ocasio-Cortez is among the first lawmakers to publicly address whether the AI sector’s explosive growth represents an unsustainable bubble. Critics of the market warn that tech firms are locked in a cycle of high spending on AI infrastructure without clear profitability, while others argue that strong demand for AI tools and computing power justifies the investment. Wall Street is paying close attention, with investors awaiting Nvidia’s earnings report on Wednesday for signs of whether the momentum is slowing.
Ocasio-Cortez also pointed to what she called the ethical risks of an industry under immense pressure to monetize. “People’s deepest fears, secrets, emotional content, relationships can all be mined for this empty promise that we’re getting from these companies to turn a profit,” she said.
